LPGCL raises concern over payment of dues by UPPCL

LPGCL raises concern over payment of dues by UPPCL

Even as state government promises to provide round the clock power supply, the Lalitpur Power Generation Company Limited (LPGCL) has raised a concern over operation-ability of its 1980 MW power plant following non-payment of dues to the tune of over Rs 1600 crores by the UP Power Corporation Limited(UPPCL).

In a letter, dated October 15, sent to the UPPCL, the LPGCL has said that because of the massive outstanding it is not in a position to keep up with its coal stocks and meet the operational and maintenance (O&M) requirement.

“The non-timely and insufficient payment from UPPCL has already deteriorated the fund position to release payment to Coal India Limited subsidiaries now could be able to pay railway freight for the rakes whatever arrives and even leading to Non-performing assets (NPAs) position,” the company said in the letter sent to chief engineer (UPPCL).

A company spokesperson claimed that the financial position turned so bad that nearly 3000 employees at the plant site could not be paid their salaries.

When contacted, principal secretary (energy) and UPPCL chairman Alok Kumar said that the state government policy was to pay power plants providing cheaper power. “We are aware about the position of LPGC. We have been releasing some payments to them and would be doing so in another few days,” he said.

The LPGCL, which was set up under the MoU route during the previous Akhilesh Yadav regime, has been providing power at the rate of nearly Rs 7 per unit to the UPPCL. After the BJP came to power, it curtailed the purchase of power from power plants providing expensive power. In fact, the company had to close down two of its 660 Mw units because of fund crunch and subsequent non-availability of coal.

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